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Gate.io Blog Profit through Copy Trading at Gate.io

Profit through Copy Trading at Gate.io

18 April 11:39


Copy trading enables beginners to follow successful traders which increases their chances of making profit.

Copy trading saves time and increases efficiency.

However, there is no guarantee that following the strategies of professional traders results in profit.

Copy trading is one of the best strategies for beginners as they can make profit in a short period.

Gate.io has a world-class copy trading platform.

Trading cryptocurrencies is one of the popular investment strategies which people use. However, trading is a risky investment strategy as one can lose much money. Novice traders are examples of people who can lose much funds through trading. Fortunately, there is a way in which inexperienced traders can easily make profit. It is through copy trading. Now, we want to find out what copy trading means.


What is copy trading?


Copy trading is a strategy where individuals copy the trades which more experienced traders make. In other words, an individual copies the moves of a successful trader. Nevertheless, an investor who follows the trade of another trader pays a small fee.

The good thing is that with copy trading, you still have full control over the potential risks which may occur. As a fact, you can easily unfollow a trader if he/she is no longer making as much profit as you anticipated. It is also important to note that even when you copy a successful trader, there is no guarantee of making profit.

Copy trading can either be manual or automatic. When it is automatic it means that whatever the trader you follow does applies to you as well. In contrast, with manual copy trading the trader chooses whether or not to execute the trades which the professional trader makes.


Why choose copy trading?


There are several advantages of using copy trading which include the following:

First, people who do not have the trading experience can also execute their trades with confidence and deliver the results. Although novice traders can start trading with little knowledge and experience, they acquire the skills with time. Therefore, the individual learns and earns at the same time. This is because all the technical and fundamental analyses are done by professional traders.

Secondly, the trader saves much time since he/she does not need to do market analysis. Therefore, he/she does not make price predictions based on past trends. Basically, that is the responsibility of the experienced trader to study the price movements in the market.

Third, the trader stands a chance to make profit in the very short run. When you follow professional traders you can make many trades within a short period and earn high profits.

Next, you get access to much information in the form of statistics and metrics which helps you to make mature decisions. Part of the data relates to all the professional traders which people can follow. For example, platforms such as Gate.io publish the potential profit one can make through following the trading strategies of specified traders. Moreso, most platforms provide real-time data pertaining to the performance of these professional traders.

Finally, copy trading leads to flexibility. For instance, the individual can easily unfollow a trader who is making less profit than expected. And the best part is that he/she can immediately follow another trader who is performing well. It is also possible for the individual trader to follow more than one professional trader, thereby reducing trading risks.




Disadvantages of copy trading


Since no one is perfect, there is a chance that you can lose your money through copy trading. This may happen if the trader you are following experiences a sideways market, a bear market or a flash crash. The truth is that when the trader you are following makes a loss you too lose your funds.

Secondly, when you follow a professional trader you pay commission to him/her. At times the commisions can turn your investment into losses.


Is copy trading good for novice traders?


Having explored the various issues, the next question is: is copy trading good for beginners? Apart from allowing beginners to earn profit within a short period, copy trading enables the novice traders to learn much from the seasoned traders. As such, copy trading minimizes risks on the part of the traders, yet equipping them with useful knowledge and experience.

Steps in copy trading
Although it seems very easy to start your journey in copy trading there are a few steps to follow.
Creating your account: The first step in copy trading is creating an account on Gate.io and completing the required processes such as the KYCs. You also need to set your 2FA to increase the security of your account.

Decide on the amount to invest: Once you have set your account, you need to decide on the amount you want to invest. However, it is wise to use only a fraction of your money even when you are copy trading. This ensures that you do not suffer from financial distress if you lose some trades.

Keep a watch on your trades: Even when you are following the strategies of successful traders, you should keep checking the market performance. At times you may need to terminate the trades by unfollowing the traders who are making losses.


How to use copy trading at Gate.io?


It is very simple to use the copy trading feature at Gate.io. To do so, click on “Copy Trading” in the Navigation Bar.


In the leaderboard, you will see different strategies to follow. It is important to take your time to analyse the performance of the different professional traders. For each individual trader, for instance, you will see the rate of return. This should give you an idea on the best traders to follow.

To select a strategy you want, just click on“Copy.”


Once you have done that a pop-up page will appear where you input your details.


Conclusion


In a summary, copy trading enables less experienced traders to copy the strategies used by professional traders. Due to its simplicity, many beginners trade cryptocurrencies successfully. Gate.io is an exchange which has a viable copy trading service. In order to start trading, an individual should create an account at Gate.io, complete the KYCs and select the strategies to follow.



Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.



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